# Aflac Inc. (AFL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/AFL/thesis · /stocks/AFL/memo

## Financial Snapshot

---
ticker: AFL
step: 04
generated: 2026-05-12
source: quick-research
---

### Aflac Incorporated (AFL) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25) |
|--------|--------|--------|--------|--------|----------|
| Total Revenue | $19.1B | $18.7B | $18.9B | $17.2B | -9.3% |
| Net Premium Income | $15.0B | $14.6B | $14.0B | $13.4B | -4% |
| Net Investment Income | $3.7B | $3.6B | $3.6B | $3.4B | -6% |
| Adjusted Net Earnings | $5.2B | $5.6B | $5.4B | $3.6B | -33% |
| Diluted EPS | $7.69 | $9.55 | $9.59 | $6.65 | -31% |
| Net Profit Margin | 28.8% | 30.0% | 28.8% | 21.2% | -760bps |
| Annualized ROE | ~14% | ~16% | ~14% | ~22% | |

Note: FY25 net earnings $3.6B reflects net investment losses + increased credit loss allowances. Q4 25 diluted EPS $2.64. Q3 25 annualized adjusted ROE ex-FX = 22.1% — strong core profitability.

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$4.0B |
| Free Cash Flow | ~$3.5B |
| FCF Conversion | ~100% |
| Cash & Equivalents | ~$5.0B |
| Total Debt | ~$8.0B (59% in yen) |
| Investment Portfolio | ~$110B |
| Yen Debt Hedge | Enterprise hedging program

#### Key Ratios (approximate)
- P/E: ~16x | P/B: ~1.7x
- Revenue Growth (TTM): -9.3% | Net Margin: 21.2%
- Dividend Yield: ~2.0% | Dividend Growth: 43 years
- $3.5B 2025 buybacks (~6% of market cap)
- 114.3M shares remaining authorized for repurchase

#### Growth Profile
Japan core earned premiums declining 1-2% (paid-up products + aging population). US supplemental growing low-single-digit. Investment income compounding as portfolio rolls forward. Margin recovery on credit loss normalization. Hybrid LTC rider + Medical Shield new product rollouts. Aflac Re Bermuda + Japan Post deal expand reinsurance optionality.

#### Forward Estimates
- **FY 2026**: Adj EPS ~$7.00-7.50; net premium income +0-1%; ROE ~15-18%
- **FY 2027**: Adj EPS ~$7.50-8.00 with new product traction
- $113 average analyst price target vs ~$103 = ~10% upside
- 43-year dividend growth track record + 5.2% Q1 26 dividend increase

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AFL/fundamental

## Navigation

- Overview: /stocks/AFL
- Financials (this page): /stocks/AFL/financials
- Thesis: /stocks/AFL/thesis
- Investment Memo: /stocks/AFL/memo
- Coverage universe: /stocks